Trump defends China agreement to reduce trade imbalance

Trump defends China agreement to reduce trade imbalance

The Trump administration said it would hold off on tariff threats after the two nations agreed to "substantially" reduce the USA merchandise trade deficit with China, which past year hit a record $375 billion.

The "structural changes" demanded by Lighthizer and others were set out in the U.S. document issued to China during talks in Beijing at the beginning this month.

With a 3.6% advance, Boeing was the Big Board's best performer on the back of the easing of trade tensions between the world's two largest economies.

President Donald Trump defended his administration's approach to resolving a trade war with China in a series of tweets Monday, following three days of negotiations with the Chinese that ended with little clarity.

But over the weekend, Steven Mnuchin, the U.S. Treasury Secretary, cited "progress" in trade talks and said the economic rivals were "putting the trade war on hold".

The celebration could prove premature.

The threat of open trade war remains.

In the Reuters article, a Morgan and Stanley economist estimated the agreement would bring $60-$90 billion more in exports during a period of years, but less than the $200 billion trade deficit deduction that President Trump initially demanded. That's because a stronger dollar makes US goods and services sold overseas more expensive, which could cause both sales and earnings growth to slow.

South Korea's economy, peace hang on summit with President Trump
The North Koreans also seemed particularly upset by Bolton, who called on them to do what Libya did more than a decade ago. Trump wants to maintain the "maximum pressure" campaign he credits with bringing Kim to the negotiating table.

The U.S. dollar, which has been surging higher vs. foreign currencies, is at a five-month high. She said the Chinese, who increasingly have their own technology to defend, might be open to strengthening intellectual-property protections and to pressuring local governments to stop demanding technology transfers.

In the meantime, Politico says the USA will hold off on its threat to slap tariffs on up to $150 billion in Chinese goods as a way to deter intellectual property theft and forced technology transfers.

Trump expressed his misgivings on the negotiations to reporters during an Oval Office meeting Tuesday with South Korean President Moon Jae-in.

While Trump said no deal was finalized, he also suggested that in lieu of existing, harsh sanctions, ZTE could be forced to change executive leadership and face significant fines.

"I think we've made very meaningful progress and now it's up to both of us to make sure that we can implement it", Mnuchin said on CNBC.

Trump is dispatching Commerce Secretary Wilbur Ross to try to settle on the kinds of details that were sidestepped in last week's talks with a Chinese delegation led by Vice Premier Liu He.

Trump reversed course via tweet a week ago, declaring that it would cost "too many jobs in China". The U.S. needs the help of Beijing, which wields influence in Pyongyang, to help seal North Korea's border and prevent goods from reaching Kim's regime in violation of global sanctions.

China, in turn, threatened billions of its own tariffs on incoming USA products. Marco Rubio, and Trump's former adviser Steve Bannon - all bashed the deal Monday.

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